Hughes Tool produces a patented drill bit (thus, it has a monopoly on the bit). Only Hughes Tool can resharpen the bit. Suppose it costs Hughes Tool exactly $100 to resharpen a drill bit.
a. True or False: If all of Hughes Tool's customers value the drill bit equally, then Hughes Tool should charge exactly $100 for a resharpening.
b. True or False: If Hughes Tool's customers differ significantly in how much they value the drill bit, then Hughes Tool should charge exactly $100 for a resharpening.
c. If you see Hughes Tool taking steps to prevent competitors from offering resharpening services, what can you conclude about the diversity of Hughes Tool's customers?